LyondellBasell plans to sell the PO and derivative products to both domestic and global customers
An announcement made by Bob Patel, the Indian American CEO of LyondellBasell – one of the world’s largest plastics, chemicals and refining companies, confirms that it will build the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in the Houston area at an estimated cost of $2.4 billion.
The project, which has been termed as the single-largest capital investment made by the company, is expected to create up to 2,500 jobs and approximately 160 permanent positions after the completion.
“This world-scale project is a key part of our organic growth strategy which is designed to meet rising global demand for both urethanes and cleaner-burning oxyfuels while creating real, long-term value for our shareholders,” said Bob Patel, CEO of LyondellBasell.
“Our investment in this plant combines the best of both worlds: our leading PO/TBA process technology with proximity to low-cost feedstocks, which gives LyondellBasell a competitive advantage in the global marketplace for these products,” he added.
“We are pleased that LyondellBasell continues to view the Houston area as important to their global operations, creating jobs and opportunities for Houstonians,” said Bob Harvey, president and CEO of the Greater Houston Partnership.
“This new project further advances Houston’s position as a global hub of petrochemical manufacturing, leveraging Houston’s strategic access to the Americas and top markets around the world,” he added.
According to the official press release of LyondellBasell, once the plant becomes operational, it will have the capacity to produce an estimated 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually.
Propylene oxide is used in the manufacture of bedding, furniture, carpeting, coatings, building materials and adhesives, while the tertiary butyl alcohol will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold in Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene, which is used in tires and lubricants.
The majority of the products will be exported via the Houston Ship Channel.